National Treasury Cabinet Secretary Henry Rotich on Thursday suggested that the Value Added Tax (VAT) on petroleum products could be lowered from 16 to 12 per cent.
Reports stated that Rotich indicated this during that a crisis meeting attended by House Speaker Justin Muturi, Attorney General Paul Kihara, National Assembly Majority Leader Aden Duale, Solicitor General Ken Ogeto and Deputy Chief of Staff Njee Muturi.
Members of the Budget and Appropriations Committee chairman Kimani Ichung’wa and Finance committee chairman Joseph Limo were also in attendance.
Rotich reportedly reached out to the National Assembly’s leaders while in China and claims suggest that the proposed budget cuts to plug revenue shortfalls that will be occasioned by the suspension of the fuel tax by another two years.
However, it wasn't clear whether CS Rotich was conveying a message from President Uhuru Kenyatta following MPs’ rejection of several other proposals contained in the Finance Bill but Speaker Muturi described the deliberations as “work in progress” since nothing had been firmed up yet.
Speaker Muturi maintained that the National Assembly would work with the Executive to find a solution to the fuel crisis that has caused uproar following an increase in consumer prices.
“We have had a meeting to try and address the issue you have raised and this was just the first meeting. I can assure you that going forward we will be able to address the issues that might be of concern to Kenyans,’’ the National Assembly Speaker remarked.
Kenyans got a reprieve on Thursday after the High Court in Bungoma granted temporary orders stopping the levying of 16 per cent VAT on fuel products.
The petitioners represented by lawyer Ken Amondi argued that Treasury Cabinet Secretary Rotich flouted core constitutional principles and values by affecting the fuel tax on September 1.
They argued it was wrong for CS Rotich to hide under the guise of waiting for the Presidential assent on a matter that Parliament had deliberated.
